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How does state level tax administration reduce business administrative expenses?

Answer: Businesses do not have to file tax returns with each jurisdiction in which it sells a product or service. Each state provides a central point of administration for all state and local sales and use taxes and distributes the local taxes to the local governments. Each state also requires its local governments to tax and exempt the same products and services as the state. This minimizes the information a business must know to conduct business in a state